Ambrx lands $24 million heart, diabetes drugs deal

Bristol-Myers Squibb will pay San Diego drug developer Ambrx at least $24 million to develop and commercialize drugs derived from a protein targeting type 2 diabetes and a hormone that has shown promise for treating heart failure, the companies said Thursday.

“These programs have shown tremendous potential in preclinical studies, and we believe that Bristol-Myers Squibb has the necessary expertise to best lead their continued development," said Simon Allen, chief business officer for privately owned Ambrx.

The deal, which includes a $24 million upfront fee and potential milestone payments, is the fourth strategic partnership signed by Ambrx since 2007.

It gives Bristol-Myers worldwide rights to research, develop and sell drugs that come out of the Ambrx programs.

The protein, known as fibroblast growth factor 21, is a naturally occurring molecule that has been shown in preclinical testing to lower blood sugar, increase good cholesterol and trigger weight loss, Ambrx said.

The hormone relaxin normally is involved in human reproduction and appears to improve heart function based on preclinical test results, the company said.

Potential drug derivatives were created with Ambrx's ReCODE system, which adds amino acids to the molecules to form "enhanced versions" with potential disease-fighting abilities, the company said.

“As part of our String of Pearls strategy, we seek to build relationships with companies that have innovative programs and capabilities that complement our own internal efforts," said Francis Cuss, senior vice president of research for Bristol-Myers. "Our combined expertise will provide the best chance of bringing these innovative medicines to patients.”

The deal is the second major investment recently made by the New York pharmaceutical company in a San Diego biotechnology firm.

Two weeks ago, Bristol-Myers purchased Amira Pharmaceuticals and its early-stage fibrosis drug for $325 million upfront and $150 million in potential milestone payments.

Ambrix will use proceeds from the deal to fund its other drug development programs, including one that seeks ways to attach therapeutic molecules to antibodies that target diseased cells, Allen said.